PERSONAL AUTO MANUAL

Transcription

1 PERSONAL AUTO MANUAL TABLE OF CONTENTS ITEM RULE # PA PAGE Antique Autos Application Procedure Artisan Rating Factor Auto Loan/Lease Coverage Campers (See Pickup Camper Bodies and Toppers) Cancellation/Nonrenewal Changes Classic Autos Classification Definitions Age, Sex and Marital Status Classifications (Of Operator) Use Classifications Classification Procedure Classification Changes Multi-Car Risks Primary Classification Secondary Classification Single Car Risks Coverages - Limits and Deductibles Base Rates Deductible Insurance Personal Injury Protection Coverage Physical Damage for Vehicles Over 10 Years Old Safety Glass Coverage Split Liability Limits Underinsured Motorists Coverage Uninsured Motorists Coverage Customizing Equipment Coverage Definitions Artisan Vehicles Farm Family Corporations and Partnerships Farm Truck Federal Government Employees Pickups and Vans Private Passenger Auto Discounts Accident Prevention Course Anti-Theft Companion Policy Good Student Household Mature Driver Multi-Car Passive Restraint Electric Autos Eligibility Personal Auto Policy Eligibility Vehicles and Drivers Employers Nonownership Liability Excess Electronic Equipment Cov. & Tapes, Records, Disks & Other Media Cov Extended Non-Owned Coverage (Borrowed Or Rented Autos) Minnesota (Ed. 008) New Business North Star Mutual Ins. Co. Renewals

2 PERSONAL AUTO MANUAL TABLE OF CONTENTS CONTINUED ITEM RULE # PA PAGE Farm Truck Rating Factor Table Financial Responsibility Filings Installment Premium Payment Option Insurance Score Loan/Lease Coverage Motor Homes Named Non-Owner Coverage Nonrenewal (See Cancellation/Nonrenewal) Optional Limits Transportation Expenses Coverage (Rental Expense Cov.) Pickup Camper Bodies and Toppers Policy Period and Continuation Premium Calculation Steps Premium Determination Premium Determination - Farm Truck Premium Procedures Bad Check Charge Down Payment Requirements Endorsements New Business Non-Payment Renewals Pro-Rata Changes Questionable Applicants Rate Change Rates For Symbols Not Displayed Rating Factors and Statistical Codes Primary Classifications Secondary Classifications Rating Territories And Factors Rating Tier Selection And Factors Auto Discount Selection Guide Roadside Assistance Safe Driver Insurance Plan (SDIP) Administration of SDIP Combination Accidents and Convictions Definitions Driving Record Sub-Classification Multi-Car Risk Schedule of Endorsements Suspension Symbol Determination for Pickups, Vans, Farm Trucks and Unlisted Vehicles Towing and Labor Costs See Roadside Assistance Trailers Designed for Use with Private Passenger Autos Transportation Expenses Coverage Optional Limits (Rental Expense Cov.) Trusts as Additional Insureds Undesirable Vehicles Whole Dollar Premium Territory Definitions... T-1-T-3 Minnesota (Ed. 011) New Business North Star Mutual Ins. Co. Renewals

3 PERSONAL AUTO MANUAL RULE 1 - PERSONAL AUTO POLICY - ELIGIBILITY A. A Personal Auto Policy will be used to provide coverage to private passenger autos, and motor vehicles considered as private passenger autos in RULE 2 if: 1. They are written on a specified auto basis; and 2. They are owned by an individual or by spouses who are residents in the same household. Both spouses who are residents in the same household may be listed as named insureds on the declarations page. B. A Personal Auto Policy will be used to provide coverage to private passenger autos, pickups, and vans that are owned jointly by two or more: 1. resident relatives other than spouses; 2. resident individuals; or 3. non-resident relatives, including non-resident spouses if: a. they are written on a specified auto basis; and b. the Joint Ownership Coverage Endorsement is attached. C. A Personal Auto Policy will be used to provide coverage to motor homes if: 1. they are written on a specified vehicle basis; 2. they are owned by an individual, by spouses who are residents of the same household, or by two or more resident relatives; and 3. the Miscellaneous Type Vehicle Endorsement is attached. D. Private Passenger Autos owned by corporations, co-partnerships, or unincorporated associations are not eligible. Exception: Private Passenger Autos owned by farm family co-partnerships or farm family corporations principally garaged on a farm or ranch shall be classified and rated in accordance with RULES 3 and 4, provided that vehicle is not used in an occupation other than farming or ranching. E. A Personal Auto Policy will be used to provide coverage to farm trucks provided they meet the requirements in RULE 1, Paragraph A. and are not used to haul for others or for hire. F. NAMED NON-OWNER PP A Personal Auto Policy may be used to provide coverage to a named individual who does not own an auto. The named non-owner coverage endorsement must be attached. This coverage may be used for existing accounts only. Not to be used on new business. RULE 2 - DEFINITIONS A. 1. PRIVATE PASSENGER AUTO A private passenger auto is a four wheel motor vehicle, other than a truck type, owned or leased under contract for a continuous period of at least six months, and a. not used as a public or livery conveyance for passengers; b. not rented to others; and c. not enrolled in a personal vehicle sharing program or being used in connection with such a sharing program. Minnesota (Ed. 005) New Business North Star Mutual Ins. Co. PA - 1 Renewals

4 RULE 2 - DEFINITIONS (Continued) 2. PICKUPS AND VANS A pickup or van shall be considered a private passenger auto if it: a. is owned by an individual or by spouses who are residents of the same household; b. has a Gross Vehicle Weight Rating of 10,000 lbs. or less; and c. is not used for the delivery or transportation of goods or materials unless such use is: 1) incidental to the insured s business of installing, maintaining or repairing furnishings or equipment as an Artisan (see definition of Artisan Vehicle below); or 2) for farming or ranching. 3. FEDERAL GOVERNMENT EMPLOYEES PP A pickup or van used in the business of the United States Government, by an employee of the Government, shall be considered a private passenger auto only if: a. it meets the conditions in 2.a., 2.b. and 2.c. above; and b. coverage is limited in accordance with the federal employees using autos in government business endorsement. 4. FARM FAMILY CORPORATIONS AND PARTNERSHIPS NSG-PA02 A motor vehicle owned by a farm family co-partnership or farm family corporation shall be considered a private passenger auto owned by two or more relatives who are residents of the same household if: a. it is principally garaged on a farm or ranch; and b. it otherwise meets the definitions in 1. and 2. above. 5. FARM TRUCK NSG-PA04 A farm truck is a truck type motor vehicle, including semi-tractors which is used for farming purposes, but which is not used for pleasure, commuting to work or hauling for hire. 6. ARTISAN VEHICLE An artisan vehicle is a pickup, van or SUV with a Gross Vehicle Weight Rating of 10,000 lbs. or less. The use must not be for the delivery or transportation of goods or materials unless such use is incidental to the insureds business of installing, maintaining or repairing furnishings or equipment. (i.e. carpenter, electrician, plumber, plasterer or painter) B. AUTO as used in this manual refers to a private passenger auto or a vehicle considered as a private passenger auto. C. LIABILITY as used in this manual refers only to Bodily Injury and Property Damage Coverages. D. OTHER THAN COLLISION (OTC) COVERAGE as used in this manual refers to other than collision damage to a motor vehicle. E. OWNED as used in this manual includes an auto leased under contract for a continuous period of at least six months. If an auto lease contract requires the lessee to provide primary insurance for the lessor, attach the additional insured-lessor endorsement. F. GROSS VEHICLE WEIGHT RATING as used in this manual refers to the maximum loaded weight for which a single vehicle is designated, as specified by the manufacturer. Minnesota (Ed. 005) New Business North Star Mutual Ins. Co. PA - 2 Renewals

5 RULE 3 - CLASSIFICATION DEFINITIONS A. USE CLASSIFICATIONS 1. BUSINESS USE means that the use of the auto is required by or customarily involved in the duties of the applicant or any other person customarily operating the auto, in an occupation, profession or business, other than going to or from the principal place of occupation, profession or business. 2. FARM USE means the auto is principally garaged on a farm or ranch, and: a. it is not customarily used in going to or from work other than farming or ranching; b. it is not customarily used in going to or from school; c. it is not customarily used in any occupation other than farming or ranching; and d. a substantial portion of the insured s income is derived from active farming or ranching. 3. PLEASURE USE means: a. no BUSINESS USE; and b. personal use, including driving to or from work or school: 1) less than 3 road miles one way; and 2) 3 or more, but less than 15, road miles one way for not more than 2 days per week or not more than 2 weeks in any 5 week period. 4. WORK LESS THAN 15 MILES means: a. no BUSINESS USE; and b. personal use, including driving to or from work or school: 1) 3 or more, but less than 15, road miles one way if such usage is more than 2 days per week or more than 2 weeks per 5 week period; or 2) 15 or more, but less than 30, road miles one way, for not more than 2 days per week or not more than 2 weeks in any 5 week period. 5. WORK 15 OR MORE BUT LESS THAN 30 MILES means: a. no BUSINESS USE; and b. personal use, including driving to or from work or school: 1) 15 or more but less than 30 road miles one way more than 2 days per week or more than 2 weeks in any 5 week period; or 2) 30 or more road miles one way for not more than 2 days per week or not more than 2 weeks in any 5 week period. 6. WORK 30 OR MORE MILES means: personal use including driving to or from work or school 30 or more road miles one way more than 2 days per week or more than 2 weeks in any 5 week period. 7. An auto driven part way to or from work or school, such as to a railroad or bus depot, whether or not the auto is parked at the depot during the day, shall be considered as driving to or from work or school. 8. An auto used by a member of the clergy shall not be considered as used for business or driven to and from work. Rate as pleasure use. LIABILITY COVERAGE ONLY 9. An auto used in the business of the U.S. Government by one of its employees may be classified and rated as PLEASURE USE, WORK LESS THAN 15 MILES or WORK 15 OR MORE MILES when the Federal Employees Using Autos In Government Business endorsement PP is used to limit coverage. Minnesota (Ed. 002) New Business North Star Mutual Ins. Co. PA - 3 Renewals

6 RULE 3 - CLASSIFICATION DEFINITIONS (Continued) B. AGE, SEX AND MARITAL STATUS CLASSIFICATIONS 1. YOUTHFUL OPERATOR means an applicant or any other operator resident in the same household as the applicant, who customarily operates the auto, and is one of the following: a. YOUTHFUL UNMARRIED FEMALE OPERATOR - unmarried female age 24 and younger; b. YOUTHFUL MARRIED MALE OPERATOR - married male age 24 and younger; c. YOUTHFUL UNMARRIED MALE OPERATOR - unmarried male age 24 and younger who is not an owner or principal operator; or d. YOUTHFUL UNMARRIED MALE OWNER OR PRINCIPAL OPERATOR - unmarried male age 24 and younger who is an owner or principal operator. 2. OPERATORS AGE 50 AND OVER a. The Operator Age Class shall apply if the operator of the auto is age 50 to 64. b. The Operator Age Class shall apply if the operator of the auto is age 65 to 74. c. The Operator Age 79 or Over Class shall apply if the operator of the auto is age 79 or over. d. If all operators in the household are age 50 or over, the above classes shall apply to all autos. e. If there are operators in the household under age 50: 1) Any youthful operator class shall apply in accordance with the youthful operator rules; 2) The age of the operator shall be disregarded for the purposes of rating automobiles in excess of the number of operators age 50 and over (unless a youthful operator classification is applicable); and 3) Autos principally operated by an adult under age 50 shall be rated at the All Other or Only Operator Female Age Classification (unless a youthful operator classification is applicable). 3. AGE means the age attained on the last birthday. 4. MARRIED means a married person living with his or her spouse and includes a person widowed, divorced or legally separated only if such person has custody of one or more resident children. 5. PRINCIPAL OPERATOR means: a. an individual whose operation of the auto constitutes 50% or more of its time or mileage use is considered a principal operator; b. each individual who does not qualify as a principal operator as defined in a. above but whose aggregate operation of all private passenger automobiles in the household equals 50% or more of the total time or mileage use of one insured automobile is considered a principal operator for one such automobile; c. if two or more unmarried males age 24 and younger do not individually qualify as principal operator but their combined use of the automobile constitutes 50% or more of its total time or mileage use, the automobile is considered as having a principal operator of the same age as the unmarried male age 24 and younger who is the most frequent operator. The same interpretation applies to situations involving two or more unmarried females age 24 and younger. d. When two or more vehicles are insured for a principal operator with a youthful driver class code, the youthful operator - principal driver factor will apply to the highest rated vehicle whether principally operated or not. The all other class factor will apply to the other vehicles insured. 6. RESIDENT means anyone residing in the same household. Exceptions: a. A person in active military service with the armed forces of the United States of America is not considered a resident in the applicant s household unless this person customarily operates the auto. This applies to military assignment after basic training. Minnesota (Ed. 005) New Business North Star Mutual Ins. Co. PA - 4 Renewals

7 RULE 3 - CLASSIFICATION DEFINITIONS (Continued) b. If a YOUTHFUL UNMARRIED FEMALE OPERATOR is a student residing at an educational institution over 100 road miles from the address of the named insured shown on the declarations and does not have a car with her, she is rated under the All Other class on the highest rated vehicle. This does not apply to OTC only vehicles. c. If a YOUTHFUL UNMARRIED MALE OPERATOR is a student residing at an educational institution over 100 road miles from the address of the named insured shown on the declarations and does not have a car with him, he is rated as if he is MARRIED. This does not apply to OTC only vehicles. Note: For the purpose of Exception c., if the rating factor for a married youthful operator is greater than the factor for an unmarried youthful operator, use the lower factor and corresponding statistical code. RULE 4 - CLASSIFICATION PROCEDURE Refer to RULE 3 - CLASSIFICATION DEFINITIONS for definitions of terms used in this rule. A. Autos owned by an individual, or owned jointly by two or more relatives or resident individuals are classified as follows: 1. PRIMARY CLASSIFICATION a. Classify the auto according to the age, sex and marital status of the operators, the use of the auto and the eligibility of youthful operators Good Student classes, and b. Determine the applicable factor from the Primary Rating Factor tables. Note: The exposure increases considerably when a youthful driver is first learning to drive. It is therefore required that when a youthful driver can legally drive unsupervised, he or she be added to the policy as a driver and the appropriate youthful driver classification be applied on the next renewal date. 2. SECONDARY CLASSIFICATION a. Determine if the auto is: 1) a single car; or 2) part of a multi-car risk. b. Refer to the Safe Driver Insurance Plan to classify operators according to the provisions of the Plan. c. Refer to the Secondary Rating Factor table to determine the appropriate factor to be added to, or subtracted from the Primary Rating Factor to determine the Total Rating Factor. 3. The applicable Youthful Operator Classifications shall be applied as follows: Determine the number of Youthful Operators and the Primary Rating Factor for each at the Pleasure Use Classification. a. If there are more cars than Youthful Operators, or an equal number of cars and Youthful Operators, assign operators to cars as follows: 1) Each principal Youthful Operator to the car principally operated; 2) Remaining Youthful Operators to remaining cars in the order of highest rated Youthful Operator to the car with the highest Total Base Premium without regard to the cars operated; and 3) Any remaining cars at the appropriate No Youthful Operator classification. 4) If an insured is provided with a company vehicle that vehicle will be considered as their primary auto and therefore that person should not be rated on a vehicle on the policy. Minnesota (Ed. 004) New Business North Star Mutual Ins. Co. PA - 5 Renewals

8 RULE 4 - CLASSIFICATION PROCEDURE (Continued) b. If there are more Youthful Operators than cars, assign Youthful Operators to cars as follows: 1) Select the Youthful Operators with the highest Pleasure Use rating factors equal to the number of cars. 2) Of those selected in paragraph 1), assign any principal operator to the cars they principally operate. 3) Of those remaining after principal operator assignment in paragraph 2), assign operators to cars in the order of highest rated Youthful Operator to the car with the highest Total Base Premium. After assigning Youthful Operators to cars on the basis of the primary Pleasure Use factors, each factor must be adjusted for the actual car use before determining and applying the Secondary Rating Factor. c. If the TOTAL BASE PREMIUM is the same for each car, the classification for any youthful operator who is not the principal operator of any of the autos is applied to the auto with the lowest rated use classification. TOTAL BASE PREMIUM is the sum of the base premiums for Bodily Injury and Property Damage Liability, No-Fault, Other Than Collision (OTC) and Collision coverages that apply to the auto. 4. SINGLE CAR RISKS AND MULTI-CAR RISKS a. Single Car Risks If the number of youthful operators exceeds the number of autos, the Youthful Operator Classifications with the highest Primary Rating Factors apply. In determining such classifications, any Good Student qualification shall apply. b. Multi-Car Risks The applicable Multi-Car Rating Factor applies if more than one private passenger auto is owned by an individual or owned jointly by two or more resident relatives, and two or more such autos are insured in North Star for any of the following coverages: Bodily Injury Liability, Property Damage Liability, No-Fault, Other Than Collision (OTC) or Collision insurance. The vehicle operators must be resident relatives of the insured's household. For purposes of this rule, a relative shall include the following persons: Spouse; Child, adopted child, stepchild or grandchild; Parent, stepparent or grandparent; Brother or stepbrother; or Sister or stepsister. Motor Homes, Farm Trucks, or trailers are not eligible for the Multi-Car discount and do not qualify other vehicles for the Multi-Car discount. B. CLASSIFICATION CHANGES Compute premium adjustments on a pro-rata basis when changes in Primary and Secondary Rating Classifications are made. This includes the addition or deletion of an operator during the policy term. Exceptions: 1. A policy shall not be changed mid-term because of the attained age of an operator of the auto. 2. A policy shall not be changed mid-term to affect a change in the Driving Record Sub-Classification. 3. A policy shall not be changed mid-term solely due to a change in symbol assignment based on a review of loss experience for vehicle series rating by the Insurance Services Office. Minnesota (Ed. 003) New Business North Star Mutual Ins. Co. PA - 6 Renewals

9 RULE 5 - DISCOUNTS A. COMPANION POLICY DISCOUNT 1. The Companion Policy Discount allows an additional discount, (for Select, Preferred and Five Star rated vehicles) on the auto premium for those insureds who have their Homeowners (including tenants form), CDO, Mobile Homeowners or CPP (Farm Package with Personal Liability coverage) Policy with North Star Mutual Insurance Company. All policy forms must carry a minimum of $15,000 Coverage C to qualify for discount. Apply the discount to each coverage requested on the application. There may be some variance due to rounding procedures. The vehicle operators must be resident relatives of the insured's household or students enrolled in school full time, as defined by the school. Dwelling Fire policies do not apply. 2. The discount amount will be as follows: a. 20% of liability premiums (BI, PD, UM, UIM, PIP) b. 17% of the premium of all other coverages. 3. The discount shall continue for each subsequent auto renewal, provided the individual continues to maintain the qualifying policy with North Star Mutual Insurance Company. 4. On existing policies, the discount will only be applied at renewal. 5. Qualification for the Companion Policy Discount assumes that all personal autos of the insured are being written with North Star Mutual. 6. Show the qualifying policy number in the REMARKS section of the application. B. MULTI-CAR DISCOUNT The applicable Multi-Car Rating Factor applies if more than one eligible private passenger auto is owned and operated by an individual or by two or more resident relatives and the vehicles are insured on the same policy. Refer to the Secondary Classifications for application of the Rating Factors and Statistical Codes. C. HOUSEHOLD DISCOUNT The Household Discount applies when there is only one eligible private passenger rated auto insured on the policy and a resident relative insures one or more eligible private passenger rated auto(s) on a separate policy in our company. This discount provides a -.19 rating factor which is applied to the primary rating factor. The discount may also apply if the insured only has one vehicle on the policy and is supplied a company car or has a separate commercial auto policy. It may also apply to non-traditional couples both insuring their autos with North Star on separate policies. The Household Discount and the Multi-Car Discount may not apply simultaneously on the same policy. D. ANTI-THEFT DISCOUNT These discounts apply to Other Than Collision (OTC) Coverage only. To qualify, the vehicle must be equipped with a device meeting the criteria of either paragraph 1. or 2. below. 1. Alarm ONLY and Active Disabling Devices A 5% discount on Other Than Collision (OTC) Coverage will be provided on vehicles equipped with a device that does one or more of the following when activated: a. sounds an alarm; b. causes the vehicle horn to sound; c. causes the vehicle lights to flash; or d. causes the vehicle to be rendered inoperable. To qualify, the device must: a. be provided by the manufacturer of a vehicle as original equipment, or installed in a vehicle by the manufacturer of the vehicle or an authorized dealer of that manufacturer; and b. be self-activating upon locking the passenger doors of the vehicle. 2. Passive Disabling Devices A 15% discount on Other Than Collision (OTC) Coverage will be provided on vehicles equipped with a hood lock which can be released only from inside the vehicle, and with a passive disabling device which disables the vehicle by making the fuel, ignition or starting system inoperative. A disabling device is categorized as passive if a separate manual step is NOT required to engage the device. If a vehicle is equipped with more than one qualifying device, only the single highest discount shall apply. Refer to Company for required evidence of installation of anti-theft devices meeting the above criteria prior to granting a discount. Minnesota (Ed. 008) New Business North Star Mutual Ins. Co. PA - 7 Renewals

10 RULE 5 - DISCOUNTS (Continued) E. PASSIVE RESTRAINT DISCOUNT The following discounts apply to No Fault Coverage ONLY. To qualify, the private passenger auto must be equipped with a factory installed automatic occupant restraint conforming to the federal crash protection requirements, and meeting the criteria of either paragraph 1. or 2. below: 1. 20% discount will be provided when the restraint is installed in the driver-side-only position % discount will be provided when the restraints are installed in both front outboard seat positions. F. ACCIDENT PREVENTION COURSE (APC) DISCOUNT (Defensive Driver) 1. A 10% Accident Prevention Course Discount shall be applied to the premiums for Bodily Injury and Property Damage Liability, Personal Injury Protection, Uninsured/Underinsured Motorists, Comprehensive and Collision coverages, provided: a. the auto is classified and rated as a private passenger auto; and b. the operator of the auto: 1) is age 50 or older; and 2) has a completion certificate, dated within the most recent 36 months, certifying that he or she has successfully completed one of the following types of courses approved by the Minnesota Commissioner of Public Safety: a) an Accident Prevention Course, or b) an Accident Prevention Refresher Course. 2. This Discount shall apply: a. to new and renewal policies with inception dates within the 36 month period following the course completion date. b. to the auto operated by the insured with the course completion certificate subject to the following: 1) If more than one person insured on the policy meets the APC Discount eligibility criteria set forth in Paragraph 1.b., the APC Discount will be provided to the number of autos equal to the number of insureds eligible for the discount. 2) If the number of autos exceeds the number of insureds who meet the APC Discount eligibility criteria, the APC Discount will be provided to such excess autos only if there are no other drivers assigned to those autos (i.e., drivers who do not meet the APC Discount eligibility criteria.) c. only once to each such auto regardless of the number of operators with course completion certificates. 3. This Discount shall not apply to a vehicle classified and rated under the Miscellaneous Types Rule unless classified and rated as a private passenger auto. G. GOOD STUDENT DISCOUNT The applicable Good Student Classification in the Primary Classification Rating Table applies provided: 1. The owner or operator is a full time high school, vocational-technical, college or university student. A full time student means a student enrolled in school full time, as defined by the school. 2. A certified statement from a school official is presented to the Company on each annual anniversary date of the policy indicating that the student has met one of the following requirements during the immediately preceding school semester: a. is in the upper 20% of his/her class scholastically b. maintains a B average, or its equivalent. If the letter grading system cannot be averaged, then no grade can be below B ; c. when in a school maintaining a numerical grade, must have at least a 3 in a 4, 3, 2, 1 point system or its equivalent; or d. student is included in a Dean s List, Honor Roll or comparable list indicating scholastic achievement. Minnesota (Ed. 005) New Business North Star Mutual Ins. Co. PA - 8 Renewals

11 RULE 5 - DISCOUNTS (Continued) 3. The Good Student discount will stay in effect through age 24 even if the owner or operator is no longer a fulltime student if the owner/operator graduated from Vocational School, College, or University and was eligible during the last semester attended. Current Business - The Good Student Discount will be continued only if a new certificate is sent to the Home Office annually. The Home Office will send a notice to the agent approximately 90 days prior to the renewal date, stating that a new Good Student Certificate is required. It is then the agent s responsibility to forward the new certificate to the Home Office prior to the renewal notice being issued. This means that we must receive it no later than 45 days prior to the renewal date. Midterm class changes to apply the Good Student Discount will be processed using the current date. Back dating the effective date is not permitted. H. MATURE DRIVER DISCOUNT Any driver in the age group receives the best rating factors available. Generally, the discount is 15% as compared to younger age groups. RULE 6 - SAFE DRIVER INSURANCE PLAN (SDIP) A. DEFINITIONS 1. DRIVING RECORD POINTS a. Convictions Points shall be assigned for convictions during the experience period for motor vehicle violations of the applicant or any other current resident operator as follows: 1) One-half point is assigned for conviction of any moving traffic violation by any driver under the age of 30 which is not assigned under one of the following paragraphs (This is limited to the first two convictions during the experience period). 2) One point shall be assigned for the conviction of any moving traffic violation resulting in: a) suspension or revocation of an operator's license; b) the filing of evidence of insurance under the No Fault Law required as of the effective date of the policy; or c) the third and successive convictions not qualifying under paragraphs one and four of this section by a driver under age 30. 3) Two points shall be assigned for: a) the accumulation of points under a State Point System or a series of convictions requiring the filing of evidence of insurance under the No Fault Law as of the effective date of the policy; or b) conviction of reckless driving. 4) Three points are assigned for conviction of: a) driving while intoxicated or under the influence of drugs; b) failure to stop and report when involved in an accident; c) homicide or felonious assault arising out of the operation of a motor vehicle; d) driving while license is suspended or revoked; or e) driving a motor vehicle in a reckless manner where an injury to person results. b. Accidents Points shall be assigned for each accident that occurred during the experience period, involving the insured or operator of the vehicle, who is 50% or more at fault. 1) One-half point is assigned for each auto accident that results in total amount paid under Bodily Injury, Property Damage, PIP and Collision less than $2,000. Minnesota (Ed. 005) New Business North Star Mutual Ins. Co. PA - 9 Renewals

12 RULE 6 - SAFE DRIVER INSURANCE PLAN (SDIP) (Continued) 2) One point is assigned for each auto accident that results in: a) total amount paid under Bodily Injury, Property Damage, PIP and Collision of $2,000 or more; or b) a loss experienced under the OTC (Comprehensive) Coverage portion of the policy under the following conditions: A vehicle falling through the ice of any body of water; An at fault accident in which the loss would normally be paid under Collision Coverage, but glass breakage is paid under the OTC Coverage. 3) One point is assigned if, during the experience period, there were two or more accidents, each of which resulted in payment but have not been assigned a point under 2) above. 4) Chargeable losses resulting from the operation of a farm truck, motor home, artisan vehicle or an antique auto are subject to the provisions of the Safe Driver Insurance Plan. Exceptions: 1) No points are assigned for accidents incurred by an operator demonstrated to be a named insured or a principal operator of an auto insured under a separate policy in this Company. In this situation the points will be assigned to the policy on which the operator is a named insured or principal operator. 2) No points are assigned for accidents occurring under the following circumstances: a) auto lawfully parked (if the parked vehicle rolls from the parked position then any such accident is charged to the person who parked the auto); b) the applicant, owner or other resident operator reimbursed by, or on behalf of, a person who is responsible for the accident or has judgment against such person; c) auto is struck in the rear by another vehicle and the applicant or other resident operator has not been convicted of a moving traffic violation in connection with this accident; d) operator of the other auto involved in the accident was convicted of a moving traffic violation and the applicant or resident operator was not convicted of a moving traffic violation in connection with the accident; e) auto operated by the applicant or any resident operator is struck by a hit-and-run vehicle, if the accident is reported to the proper authority within 24 hours by the applicant or resident operator; f) accidents involving damage by contact with animals or fowl; g) accidents involving Physical Damage, limited to and caused by flying gravel, missiles, or falling objects; h) accidents occurring when using auto in response to an emergency if the operator of the auto at the time of accident was a paid or volunteer member of any Police or Fire Department, First Aid Squad, or any law enforcement agency. This exception does not include an accident occurring after the auto ceases to be used in response to such emergency; or i) accidents which result in an amount being paid under Personal Injury Protection or Additional Personal Injury Protection and no payment is made under the Liability or Collision coverage. This exception does not apply to single vehicle accidents in which damage to property occurs. c. One point is assigned if, during the experience period there was one-half point assigned under convictions and one-half point assigned under accidents. Minnesota (Ed. 004) New Business North Star Mutual Ins. Co. PA - 10 Renewals

13 RULE 6 - SAFE DRIVER INSURANCE PLAN (SDIP) (Continued) d. Refund of Surcharged Premium If a point has been assigned for an accident and it is later determined that the accident falls under one of the exceptions in this rule, North Star shall refund to the insured the increased portion of the premium generated by the accident. 2. EXPERIENCE PERIOD The experience period shall be the three years immediately preceding the date of application or the preparation of the renewal. Acceptability will be based on all prior years with greater emphasis being placed on the most recent three years. A one month grace period may apply, which takes into consideration accidents or convictions within 30 days of dropping off. B. DRIVING RECORD SUB-CLASSIFICATION The driving record sub-classification shall be determined from the number of Driving Record Points accumulated during the 3 year experience period as follows: C. MULTI-CAR RISK 1. SINGLE CAR Number of Driving Record Points Driving Record Sub-Classification or more 4 Points attributable to each driver shall be compiled separately and the total of all drivers shall determine the surcharge for that vehicle. 2. TWO CAR RISK The Driving Record Sub-Classification, as determined above, shall apply to each auto as shown under the Multi-Car Section in the Secondary Table. 3. THREE OR MORE CAR RISK Any points developed under SDIP are assigned to the two cars with the highest Total Base Premiums. The remaining autos are rated at Sub-Class O. TOTAL BASE PREMIUM is the sum of the base premium for Bodily Injury and Property Damage Liability; No-Fault; Other Than Collision (OTC); and Collision Coverages that apply to the auto. D. COMBINATION ACCIDENTS AND CONVICTIONS If a conviction and a chargeable accident result from the same occurrence, only the conviction or the accident developing the highest number of points shall be counted and the resulting rating points shall be used in determining the surcharge. Minnesota (Ed. 003) New Business North Star Mutual Ins. Co. PA - 11 Renewals

14 RULE 6 - SAFE DRIVER INSURANCE PLAN (SDIP) (Continued) E. ADMINISTRATION OF SDIP 1. NEW BUSINESS a. Initial information necessary to assign the proper Driving Record Sub-Classification shall be obtained from an application signed personally by the applicant. b. The signature of the applicant on all applications received from an agent shall be certified by such agent. 2. RENEWAL BUSINESS Information necessary to assign proper renewal Driving Record Sub-Classification shall be determined from any one or combination of the following: a. Company s own records; b. Motor Vehicle records; or c. An application signed by the applicant and producer. RULE 7 - PREMIUM DETERMINATION Bodily Injury and Property Damage Liability; Personal Injury Protection, Other Than Collision (OTC) and Collision premiums are determined as follows: A. Refer to the AUTO DISCOUNT SELECTION GUIDE to determine the eligibility requirements for the Select rate. If additional criteria are met, the Preferred or Five Star discounts may be applicable. B. Refer to the Rating Factors and Statistical Codes Rule to determine the applicable Classification, Rating Factor and Statistical Code. C. Refer to the ISO Symbol and Identification Manual for the appropriate symbol of the auto. When model year is used in rating and the rates for a model year are not displayed in the rate pages, use the rates shown for the latest model year. Refer to chart shown in RULE 10 for determination of symbols on pickups, vans, farm trucks and unlisted vehicles. D. Refer to Territory Definitions to determine the territorial schedule code number for the location where the auto is principally garaged. Note: When a risk is statutorily required to have, or is eligible for, a coverage that is not available in the territory of principal garaging, use the registration address to determine the territory for that coverage. E. Refer to Rule 9.A. to determine base rates for the desired coverage. F. For Stated Amount Coverage multiply the rate by the limit of liability to determine the Base Premium. G. The premium for each coverage is determined by multiplying the base rate by the appropriate rating factors. (See RULE 8 - PREMIUM CALCULATION STEPS) H. Apply the Undesirable Vehicle Surcharge if applicable. Refer to RULE 41. I. When a surcharge is applicable under the Certified Risk - Financial Responsibility Laws Rule, the surcharge is to be applied as outlined in RULE 6 - SAFE DRIVER INSURANCE PLAN (SDIP). Minnesota (Ed. 003) New Business North Star Mutual Ins. Co. PA - 12 Renewals

15 RULE 8 - PREMIUM CALCULATION STEPS After each calculation, round to the nearest whole dollar. If a particular rating item is not applicable for a particular coverage or vehicle, go to the next step. Additional Personal BI/PD Personal Injury Injury Liability Protection Protection Coverages Uninsured / Underinsured Motorists Other Than Collision Collision Ext. Trans. Exp., Excess Electrical Equip. Calculation Steps Base Rate x Options Factor N/A N/A x N/A N/A N/A N/A x Rating Tier Factor x x x N/A x x N/A x Territory Factor x x N/A x x x N/A - Deductible N/A - N/A N/A N/A N/A N/A + Combined Surcharge N/A + N/A N/A N/A N/A N/A x Work Loss Factor N/A X N/A N/A N/A N/A N/A x Model Year/Symbol Relativity N/A N/A N/A N/A x X N/A x Limit Factor X N/A N/A x N/A N/A N/A x Deductible Factor N/A N/A N/A N/A x X N/A + Full Coverage Glass N/A N/A N/A N/A + N/A N/A x Accident Prevention Course Discount x x x x x x N/A x Driver Class Factor (Primary +/- Secondary) x x x N/A x x N/A x Anti-Theft Discount N/A N/A N/A N/A x N/A N/A x Passive Restraints N/A x x N/A N/A N/A N/A x Insurance Score Factor x x x x x x x x Companion Policy Discount x x x x x x x = Premium = = = = = = = Minnesota (Ed. 007) New Business North Star Mutual Ins. Co. PA - 13 Renewals

16 RULE 9 - COVERAGES - LIMITS AND DEDUCTIBLES A. BASE RATES Bodily Injury (30/60) Property Damage (10,000) Other Than Collision* ($100 Ded) Personal Injury Protection (Basic) Additional Personal Injury Protection (Option 1) Uninsured Motorist (30/60) Underinsured Motorist (30/60) Collision** Coverage ($250 Ded) Base Rate *For vehicles 2004 & Prior, multiply the base OTC rate by a factor of **For vehicles 2004 & Prior, multiply the base Collision rate by a factor of Use ISO s 2015 Base Model Year and Symbol Relativities to calculate physical damage premiums. B. SPLIT LIABILITY LIMITS B.I. Limits (000) Factor P.D. Limits Factor * 30/ * 10, / , / , / , / ** 250, ** 500/ * State Minimum Requirements ** Do Not Bind Coverage. Refer to the Home Office for eligibility. To write maximum limits, the risk should be without any accidents or violations in the past three years. Asset protection is the primary factor in high limit consideration. Minnesota (Ed. 011) New Business North Star Mutual Ins. Co. PA - 14 Renewals

17 RULE 9 - COVERAGES - LIMITS AND DEDUCTIBLES (Continued) C. PERSONAL INJURY PROTECTION COVERAGE Autos as described in RULE 2 - DEFINITIONS, are eligible for Personal Injury Protection. 1. BASIC PERSONAL INJURY PROTECTION (PIP) PP Every owner of a motor vehicle of a type which is required to be registered or licensed in the state of Minnesota shall provide Personal Injury Protection Coverage. a. Except as provided in the endorsement, regardless of the number of persons insured, policies or plans of self-insurance applicable, claims made or insured motor vehicles to which this coverage applies, the Company's liability for personal injury protection benefits with respect to bodily injury sustained by any one eligible injured person in any one motor vehicle accident shall not exceed $40,000 in the aggregate and subject to such aggregate: Basic PIP Coverage - $20,000 medical expenses - $500 per week work loss - $200 per week essential services expenses $5,000 funeral expense $500 per week survivors' loss The non-medical benefits of work loss, essential services expenses, funeral expense and survivors' loss are subject to an aggregate limit of $20,000. Refer to the Personal Injury Protection Endorsement for explanation of coverages. b. Combined PIP Option (Stacking) 1) The option to stack Basic PIP Coverage (the Combined PIP option ) must be offered as follows: (a) When two or more vehicles subject to the Minnesota No-Fault Law are provided No-Fault coverage under the same policy, the option to stack PIP Coverage on all such vehicles must be offered to the named insured. (b) When a named insured owns two or more vehicles subject to the Minnesota No-Fault Law, but insures only one such vehicle under the policy, the Combined PIP option must be offered to the named insured. 2) If the named insured selects Combined PIP, a Combined PIP Additional Charge applies. 3) The Combined PIP Additional Charge shall be added to the premium for Basic No-Fault coverage that applies to each auto. 4) The Combined PIP Additional Charge applies to the premiums for Miscellaneous Type vehicles, other than trailers, which are subject to the Minnesota No-Fault Law. Combined Surcharge Territories 1, 3, 4, 5, 8, 9, 17 $10 (not included in the base rate) All Other Territories $ 8 (not included in the base rate) NOTE: If the insured does not desire Combined PIP, a signed request for not Combined PIP must be submitted with the application. c. Premiums - Refer to Rule 9.A. for Basic PIP premium. d. Deductibles - Personal Injury Protection The option to purchase a PIP deductible, applicable to the named insured and relatives on a per accident basis, may be offered on policies insuring an individually owned auto. Deductible Premium Reduction Medical Expenses $100 $1 Work Loss Minnesota (Ed. 005) New Business North Star Mutual Ins. Co. PA - 15 Renewals

18 RULE 9 - COVERAGES - LIMITS AND DEDUCTIBLES (Continued) C. PERSONAL INJURY PROTECTION COVERAGE (Continued) e. Exclusion of Work Loss Benefit 1) Personal Injury Protection provided to: a) a named insured; or b) a named insured age 65 or older, or age 60 or older who is retired and receiving a pension and the named insured s relatives age 65 or older, or age 60 or older who is retired and receiving a pension; may be amended to exclude work loss benefits. Under this provision Work Loss Benefits are not payable to the Named Insured or Relatives and the PIP premium is reduced. 2) Charge the following percentage of the personal injury protection base premium shown in Rule 9.A. for each operator who is assigned to an auto to which the Work Loss Benefits Exclusion will apply: Named Insured Only... 85% Named Insured and Relative Age 65 or Older, or 60 or Older and Retired... 80% 2. ADDED PERSONAL INJURY PROTECTION COVERAGE PP A wide range of Additional Personal Injury Protection coverages are available to the insured and relatives only. The following is a list of all coverages along with the limits of liability and the aggregates: Add'l Aggregate Additional Work Loss, Weekly Additional Essential Services Additional Weekly Maximum Medical Expenses and Maximum Work Loss Essential Option Expenses Survivors' Loss or Survivors' Loss Services 1. $10,000 * * * 2. 20,000 * * * 3. 30,000 * * * 4. 30,000 $15,000 $100 $ ,000 15, ,000 40, * Included in Basic Personal Injury Protection Coverage. NOTE: In order to determine total Additional PIP aggregate, add the dollar amount for Additional Medical Expenses, and the dollar amount for Additional Aggregate Work Loss, Essential Services Expenses and Survivors' Loss. Refer to the Additional Personal Injury Protection Endorsement for explanation of coverages. Premiums - Apply the following factors to the Option 1 base rate shown in Rule 9.A.: Option Factor Minnesota (Ed. 004) New Business North Star Mutual Ins. Co. PA - 16 Renewals

19 RULE 9 - COVERAGES - LIMITS AND DEDUCTIBLES (Continued) D. UNINSURED MOTORISTS COVERAGE PP OWNERS This form of coverage may be provided only if Bodily Injury Liability coverage has been purchased. If this form of insurance is purchased, it must apply to all vehicles on the policy. The limits for all vehicles must be the same. a. State Mandatory Basic Limits are 25/50, however, the lowest available limits are 30/60. b. Increased Limits - At the option of the insured, Bodily Injury Uninsured Motorists limits equal to the insured s Bodily Injury Liability limits or such lesser limits as the insured elects to carry, but not less than the mandatory basic limits shall be available to the insured. This coverage is nonstacking from one vehicle to another. c. The premiums shall not be subject to modification under the provisions of any rating plan or other manual rule. (except for the Companion Policy Discount) d. Premiums - Refer to Rule 9.A. for the base rate. For increased limits, multiply the base rate by the following factors: Limit (000) 2. NON-OWNERS Factor 30/ / / / / / If a named non-owned policy is extended to provide Uninsured Motorists coverage, the rate for such extension of coverage shall be the same as owned autos. Minnesota (Ed. 006) New Business North Star Mutual Ins. Co. PA - 17 Renewals

20 RULE 9 - COVERAGES - LIMITS AND DEDUCTIBLES (Continued) E. UNDERINSURED MOTORISTS COVERAGE PP OWNERS a. BASIC LIMITS State Mandatory Basic Limits are 25/50, however, the lowest available limits are 30/60. b. INCREASED LIMITS 1) At the option of the insured, bodily injury underinsured motorists limits equal to the insured's bodily injury liability limits or such less limits as the insured elects to carry, but not less than the mandatory basic limits shall be available to the insured. 2) This coverage is nonstacking from one vehicle to another. 3) Underinsured Motorists coverage must apply to all vehicles insured under policy. 4) The limits for this coverage must be the same for all vehicles on the policy. 5) The limits shall not be greater than the Bodily Injury Liability Limits carried. c. RATES 1) The premiums shall not be subject to modification under the provisions of any rating plan or other manual rule (except for the Companion Policy Discount). 2) Premiums - Refer to Rule 9.A. for the base rate. For increased limits, multiply the base rate by the following factors: 2. NON-OWNERS Limit (000) Factor 30/ / / / / / If a named non-owner policy is extended to provide Underinsured Motorists coverage, the rate for such extension of coverage shall be the same as owned autos. F. PHYSICAL DAMAGE COVERAGE FOR VEHICLES TEN MODEL YEARS OLD AND OLDER Physical damage coverage on vehicles 10 through 19 model years of age may be written with the following minimum deductibles: Other Than Collision (OTC)... $100 Collision... $250 Do not bind physical damage coverage on vehicles 20 model years old or older. Additional consideration may be secured from the Home Office on farm trucks and vehicles eligible for stated amount coverage. Two color photographs from opposite diagonal corners are required for vehicles that are 15 model years old or older. (Vehicle age changes on October 1st of each year). Minnesota (Ed. 006) New Business North Star Mutual Ins. Co. PA - 18 Renewals